oa 42. Determining ending consolidated balances in the fourth year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2013, for $1,760,000. The purchase price was $1,200,000 in excess of the subsidiary's $560,000 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $500,000 was assigned to Property, plant and equipment with a remaining economic useful life of 16 years, $400,000 was assigned to an unrecorded patent with a remaining economic useful life of 8 years, and $300,000 was assigned to Goodwill. On the acquisi- tion date, the subsidiary reported retained earnings equal to $312,500. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows